Goldman Sachs Launches Open-Ended European Private Credit Strategy
February 21, 2024 - Goldman Sachs Alternatives today announced that it has launched a new open-ended, semi-liquid European private credit strategy (“GSEC”) that will benefit from the firm’s 28-year track record as a leader in European private credit.
This launch continues the firm’s successful efforts to expand access to its Alternatives platform for professional investors (including qualified individuals). GSEC was seeded in Q4 2023 and has already attracted strong interest with more than €550m equity raised from investors to date. At present, the strategy which has paid its first distribution to investors, has committed to 23 private credit portfolio companies.
Goldman Sachs Alternatives has been investing in private credit in Europe since 1996, building deep relationships with companies and financial sponsors, and navigating multiple economic cycles and market environments. The private credit business has invested approximately $180bn since inception and is one of the largest platforms globally, with a deep local presence in key markets across the US, Europe, and Asia. The senior direct lending strategy has more than $65bn in assets under supervision and has invested in over 440 companies in that time.
Drawing on the sourcing capabilities of Goldman Sachs, which has an expansive network amongst the corporate and financial sponsor community, the team seeks to build portfolios of directly originated, senior secured debt from medium to large size borrowers. The strategy targets companies with defensive positions in non-cyclical, recession-resilient industries.
The strategy continues Goldman Sachs’ ambitions to expand access to its $450bn alternatives platform and provide new channels through which certain qualified and professional individual investors can access the performance and diversification benefits of private markets.
The launch of GSEC follows the close of Private Markets ELTIF 2023, which was launched last year to provide direct exposure to a range of investments across sectors and strategies in private markets.
James Reynolds, Global Head of Direct Lending at Goldman Sachs Alternatives, said:
“We believe we have a differentiated position as a leading incumbent in the direct lending markets in Europe and globally. We continue to see the European private credit market as an active source of stable returns for investors and we are pleased to continue finding ways for investors to access these markets.”
Stephanie Rader, global co-head of Alternatives Capital Formation at Goldman Sachs Alternatives, said:
“Similar to the US, we’ve seen significant investor demand for an open-ended semi-liquid private credit product and we are continuously developing solutions to satisfy that demand.”
About Private Credit at Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $450 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.
The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has over $2.8 trillion in assets under supervision globally as of December 31, 2023.
Established in 1996, Private Credit at Goldman Sachs Alternatives is one of the world’s largest private credit investors with over $110 billion in assets across direct lending, mezzanine debt, hybrid capital and asset-based lending strategies. The team’s deep industry and product knowledge, extensive relationships and global footprint position the firm to deliver scaled outcomes with speed and certainty, supporting companies from the lower middle market to large cap in size.
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